ETFinance Review 2020
ETFinance is a Cyprus based Forex and CFD broker that offers 300+ trading instruments on the ever popular MetaTrader 4 (MT4) platform via web browsers, mobile apps and desktop. This broker has a limited selection of trading tools and funding options whilst their spreads are not the tightest when compared to other online brokers.
ETFinance Review 2020, Pros & Cons
- Regulated broker
- Access to trade 300 trading instruments
- MT4 trading platform for desktop, web & mobile apps
- Some traders educational resources
- Clients from USA are not accepted
- Limited trading platforms
- Limited trading tools
- No managed accounts or social trading
- Not the lowest spreads
- Demo account is only for 14 days
- Minimum $200 deposit
In this detailed ETFinance review, our online broker research team have covered some of the most important aspects for you to consider when choosing the best broker for your online trading needs.
ETFinance is not ranked in our best forex brokers, best stock brokers, best cfd brokers, best crypto brokers or best online brokers categories. You can use our free broker comparison tool to compare online brokers including ETFinance.
ETFinance Review: Summary
Founded in 2016 in Cyprus, ETFinance provides access to trade forex and CFD instruments over the internet. It allows clients from all over the world to enjoy the brokerage services offered. The website is available in Spanish, Dutch, German, Portuguese, English and Italian.
ETFinance was established with a vision to help ambitious traders achieve their goals by providing them with cutting edge online trading platforms that will allow them to trade to the best of their ability.
ETFinance lists ‘OBR investments Ltd’ as the sole execution venue of all client orders. This company acts as the principal to all clients’ orders by taking the opposite side of all trades. It is also the only liquidity provider.
ETFinance has sponsored the Real Madrid basketball team; ‘Real Madrid Baloncesto’. They are one of the top professional basketball teams in the Spanish Basketball league and one of the most successful Spanish basketball teams in Europe with multiple Spanish League championships, Spanish cup titles, EuroLeague championships and Saporta Cups.
ETFinance Review: Regulation
ETFinance is the trading name of ‘MAGNUM FX (CYPRUS) LTD’ which is registered in Cyprus with the registration number: HE 360548. It is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 359/18.
Magnum FX Ltd is authorised to provide services to European Economic Area (EEA) countries through the MIFID II regulations. It is also a member of the Investor Compensation Fund (ICF) which provides insurance for eligible clients of Cyprus investment firms to help ensure the safety of investors’ funds. Thus, if ETFinance suffers a crisis and becomes insolvent, the ICF can pay eligible investors some compensation of up to €20,000 per client.
ETFinance states that its ‘Know Your Customer’ (KYC) policy is very important in order to properly identify every client because the broker will not condone any unlawful acts like identity theft, money laundering, financial fraud, etc. For this reason, every customer is asked to provide a government issued identity card and a utility bill.
ETFinance must also abide with the Anti Money Laundering (AML) policy issued by CySEC. The broker verifies every client, poses questions about the source of funds and client’s financial status. Cash deposits and third party payments are prohibited. This is to avoid using the broker to launder illegally acquired money or to finance terrorism in any part of the world.
All clients’ transactions are digitally secured by a Secured Socket Layer (SSL). ETFinance has deployed this technology in order to prevent the infiltration of cyber criminals who might want to hack into the network.
ETFinance Review: Countries
ETFinance does not provide its services to clients from the United States, Belgium, Japan, Nigeria and some other countries. Some ETFinance features and products mentioned within this ETFinance review may not be available to traders from specific countries due to legal restrictions.
ETFinance Review: Trading Platforms
MT4 Trading Platform
MetaTrader 4 (MT4) is a very well-known online trading platform used by millions of forex/CFD traders all over the world. It was developed in 2005 by a Cyprus based Russian Company; MetaQuotes Software Corporation. The MT4 platform is free and comes with a myriad of tools for charting, analysis and trading. One of the most valuable features of the MT4 is its scalability; its features, tools and capability can be improved through the use of add-on apps built with the MQL4 programming language. ETFinance provides the MT4 as WebTrader, desktop application for Windows as well as mobile trading apps. The WebTrader has all the basic functions of the MT4 and it runs on any operating system or device that has a web browser.
Here are some of the core features of the MT4 platform:
- Preloaded with 30 technical indicators but it can be extended to thousands using plugin apps.
- Charts of all the tradable assets can be displayed in real time over 9 timeframes from 1 minute to 1 month.
- Comes with 24 drawing tools for chart analysis.
- The ‘Auto trading’ feature supports the automation of strategies through the deployment of Expert Advisors (EAs).
- Strategy tester for back testing EAs over historical data.
- Supports one-click trading and trading from the charts.
- Intuitive and easily customisable, available in over 35 languages.
- Has advanced order management and risk management tools.
- Gives direct access to the MQL market where trading tools like EAs, indicators, signals, etc can be downloaded.
- Price alert notifications via SMS, email & platform pop-ups.
MT4 Mobile Trading App
With the MT4 mobile trading apps, traders have the opportunity to monitor and analyse the markets as well as enter and exit positions while on the go. The mobile app integrates seamlessly with the WebTrader and desktop MT4 accounts. It is developed for Android and iOS devices and can be downloaded from their respective app stores.
Here are some of the primary features of the MT4 mobile trading app:
- Simple and easy to use app with customisable colours, layouts and tools.
- Displays the bid and ask prices of all the trading instruments in real time.
- Easy to enter trade positions, modify and exit trades using multiple order types including pending orders, stop loss and take profit.
- Charts are displayable on 9 timeframes from one minute to one month.
- 30 indicators and 24 analytical tools used for technical analysis.
- Price alert push notifications.
ETFinance Review: Trading Tools
The economic calendar is a very important tool used in fundamental analysis. The calendar displays the dates and times when important events that can impact the financial markets will happen. The ETFinance calendar gives the detailed analysis, history, chart and forecast of each event. After the event, the forecast and actual impact is juxtaposed for analysis and future reference.
The quarterly earnings report calendar shows the dates when some of the biggest quoted companies in the world will release their reports. These reports are released every three months and it normally shows important information like net sales, net income, cash flow statement, earnings per share, etc.
ETFinance Review: Education
Webinars usually come up twice a week. Interested clients can register on the website before the event. The webinars focus on fundamental and technical analysis.
There are over 25 articles on forex and CFD trading. The articles focus on stocks, cryptocurrencies, technical analysis and forex pairs.
The VOD section of the ETFinance website contain about 22 videos grouped into beginners, advanced, terms and MetaTrader. The videos are very short (less than a minute), animated and straightforward.
There are 7 eBooks on the education section of the ETFinance website. The books are on global trading, capital management, trading psychology, technical analysis and advanced strategies. Each of the books is 8-pages long with actual 3 pages of readable content.
There are over 25 videos under ‘Courses’ in the education section of the ETFinance website. The videos are grouped into trading strategies, beginners’ course, CFDs and stocks, social trading platforms and trading tools.
MT4 tutorials for desktop and mobile apps are provided by ETFinance. The tutorials comprise of 11 short videos that are loud, clear and easy to understand.
ETFinance Review: Trading Instruments
The following instruments are available to ETFinance clients:
- 50 FX Currency pairs.
- 33 Cryptocurrencies.
- 20 Indices.
- 17 Commodities.
- 184 Stock CFDs from US, European & Australian exchanges.
ETFinance Review: Trading Accounts & Fees
The following trading account types are available at ETFinance:
- Silver Account: This is the basic trading account designed for new traders. The maximum leverage is 1:30 and the minimum spreads start from 0.07 pips. The benchmark EURUSD is 2.20 pips.
- Gold Account: The minimum spread is 0.05 pips but the benchmark EURUSD is 1.3 pips. The maximum leverage is 1:400. Account holders enjoy a swap discount of 25% and dedicated account managers.
- Platinum Account: The minimum spreads start from 0.03 pips but the EURUSD spread is 0.7 pips. Free VPS, swap discount of 50% and a leverage of 1:400 are offered to account holders.
- Professional Account: Eligible clients are invited to apply for upgrade to Professional account. This is exclusively for experienced financial experts, high volume traders or traders with a portfolio of €500,000 and above. Professional account holders trade with a maximum leverage of 1:500 but are not covered by ICF compensations.
Islamic accounts are available on any of Silver, Gold and Platinum account types. It is swap-free because Muslims are not permitted to earn interests. Demo accounts are freely available but unfortunately, are available for only 14 days. These demo accounts can be used to practice your trading strategies using the different trading platforms provided.
As broker fees can vary and change, there may be additional fees that are not listed in this ETFinance review. It is imperative to ensure that you check and understand all of the latest information before you open an ETFinance account for online trading.
ETFinance Review: Customer Service
The customer support desk speaks English and Spanish. They are available from 8am to 8pm GMT from Monday to Friday. The team can be reached on phone, email and live web chat. If you want a customer care representative to call you back, there is a form titled ‘Want us to call you?’ Fill the form, and a member of the support team will get back to you. There is also a ‘Contact Us’ form that can be used to reach the support team. On social media, ETFinance is on Facebook, Twitter and Instagram.
ETFinance Review: Deposit & Withdrawal
The payment options available to a client depends on their country of residence. ETFinance states that it processes all withdrawal requests submitted before 11am on the same business day.
Here are the payment options:
- Debit/Credit Cards: Before using a card, clients are required to scan and upload the front and back pictures of the card. This is in line with the KYC and AML policies adopted by ETFinance. Card deposits are usually processed instantly.
- Online payments: These payments are processed instantly except in a few cases where the deposits are completed within a few hours. Trustly instant bank transfer and other bank apps can be used for deposits. E-wallets like Skrill and Neteller can also be used for payments.
ETFinance charges a withdrawal fee of €50 or equivalent where a client requests for withdrawal after placing one trade or no trades at all.
ETFinance Review: Account Opening
To open a new account, visit the brokers website and click on the ‘open account’ button. The 5-page form below displays.
Fill your personal details, employment status and other required information. You will also answer questions on your trading experience and a quiz to determine your trading knowledge and suitability for the trading products and services offered. Upload your KYC documents, then, login to the clients’ area to create accounts. Make a deposit and you can commence trading once your trading account has been approved.
ETFinance Review: Conclusion
ETFinance is an online trading broker with an average selection of trading instruments, popular trading platforms, multiple account types and a reputable regulation. The brokerage firm has also implemented industry standard security procedures to help to ensure that clients’ funds are safe and that traders are able to trade online in a digitally secured environment.
The choice of MT4 as the trading platform is beneficial because the platform is versatile, popular and sufficient to meet the needs of most traders. Multiple account types also enables each trader to make a choice based on their experience, risk appetite and services provided.
Despite this, the broker has not done well in some areas when compared to more established online brokers. There are no in-house experts that provide traders with daily analysis, market news and insights. There are no managed portfolios and social trading platforms incorporated. The minimum deposit of $200 is high when compared to other top tier brokers that give access to live trading accounts with just $10 or less. The best trading account conditions requires a much larger deposit. ETFinance should also try and develop its own trading platforms and mobile apps to complement the MT4 offering.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.